European Stocks Mixed as Earnings and Wall Street Weakness Weigh on Sentiment
European stock markets traded mixed on Friday, as investors assessed a fresh batch of corporate earnings and reacted to a sharp overnight selloff in U.S. technology shares. Market participants are also awaiting key regional growth data later in the day.
At 08:05 GMT, Germany’s DAX rose 0.2%, while the FTSE 100 in the U.K. gained 0.4%. In contrast, France’s CAC 40 slipped 0.3%.
Wall Street Selloff Impacts Global Markets
Investor sentiment weakened after a significant decline on Wall Street. The tech-heavy Nasdaq Composite dropped more than 2% on Thursday as markets reassessed elevated valuations in artificial intelligence-related stocks.
The downturn in U.S. technology shares spread to Asia and weighed on European equities. However, the recent pullback followed strong gains earlier in the week, supported by upbeat AI optimism and solid earnings results.
Despite Friday’s mixed performance, major European indices remain on track for weekly gains ranging between 0.3% and 0.8%.
Corporate Earnings in Focus
A busy earnings calendar continues to shape market moves.
NatWest Group reported a 24% increase in annual profit, slightly exceeding forecasts. The UK lender also raised its medium-term performance targets as it expands further into Britain’s wealth management sector.
Norwegian aluminum producer Norsk Hydro posted stronger-than-expected fourth-quarter earnings, benefiting from higher aluminum prices despite weaker downstream operations.
French IT services group Capgemini delivered full-year revenue above its own guidance, supported by accelerating fourth-quarter growth and rising demand for AI-powered business process services following its acquisition of WNS.
Meanwhile, aerospace manufacturer Safran projected higher revenue and earnings for 2026 after reporting improved profitability last year, driven by strong demand for civil jet engine aftermarket services.
Eurozone GDP and U.S. CPI in Spotlight
Economic data also remains a key focus. German wholesale prices rose 1.2% year-on-year in January, according to data released earlier Friday.
Attention now turns to the flash estimate of Eurozone GDP growth for the fourth quarter. Economists expect quarterly growth of 0.3%, translating into annual growth of 1.3%.
Later in the day, investors will monitor U.S. inflation data. Forecasts suggest a 0.3% monthly rise in core CPI for January, which would lower the annual rate to 2.5% from 2.7%.
A stronger-than-expected inflation reading could reduce expectations of a June interest rate cut by the Federal Reserve, potentially weighing on global equities.
Political and Trade Developments
The Financial Times reported that U.S. President Donald Trump is considering easing certain tariffs on steel and aluminum products. The move comes amid concerns over rising living costs.
A recent New York Federal Reserve study indicated that U.S. businesses and consumers bore nearly 90% of the tariff costs in 2025.
Oil Prices Steady but Headed for Weekly Loss
Oil prices stabilized on Friday but remain on track for weekly declines. Brent crude rose 0.1% to $67.53 per barrel, while WTI crude fell 0.1% to $62.83.
Both benchmarks dropped nearly 3% in the previous session, leaving them down about 1% for the week.
The International Energy Agency (IEA) warned that the global oil market could face a surplus of over 3.7 million barrels per day in 2026. The agency also noted that global oil inventories rose last year at one of the fastest rates since the pandemic.
Meanwhile, geopolitical tensions eased slightly after President Trump stated that nuclear negotiations with Iran could continue for up to a month. Extended talks reduced immediate concerns about supply disruptions in the Middle East, lowering the geopolitical risk premium that had previously supported oil prices.
